Alphabet stock jumps above 200-day moving average amidst rally

In the United States, on May 22, 2025, shares of Alphabet Inc reached a significant milestone by crossing above their 200-day moving average of $170.86. This movement occurred during Wednesday's trading session, with shares changing hands at a high of $171.73 and recording an impressive 4.6% increase for the day. The stock had previously shown signs of recovery from a period of lower momentum, particularly after hitting an April low that suggested it was overselling and approaching a critical support level confirmed in earlier months, specifically in May 2024. As Alphabet emerged from these lows, it started establishing a pattern of higher highs and higher lows, setting a strong foundation for its upward movement. The breakthrough above the 50-day moving average earlier in the month was a pivotal event, as it prepared the ground for the more significant move above the 200-day mark. Analysts and market observers regard the 200-day moving average as a crucial long-term indicator for stock performance, and holding above this trend line is considered essential for sustaining positive momentum. The On Balance Volume indicator has been trending upwards, which implies that the stock's increasing price was accompanied by a higher volume of trades on up days, indicating strong buying activity. The bullish momentum for Alphabet seems fueled by recent patterns observed in the market. This recent rise in stock value can be interpreted as part of a broader trend, with many mega-cap technology and communication companies struggling to maintain their momentum after substantial gains in previous months. However, Alphabet's decisive move above the 200-day moving average could lead to further upside potential. Analysts have calculated a potential upside target around the $197 mark based on the stock's recent performance and patterns. David Keller, a market analyst, pointed out that the price sustained itself above the neckline of an inverted head-and-shoulders pattern, indicating a stronger likelihood of a continued rally. With supportive momentum and robust volume readings, Alphabet may find itself entering a bullish phase that could drive its stock price into the $200 range and beyond. This is especially significant as it coincides with the current environment where many tech stocks are facing challenges after previous market highs. Keeping an eye on the momentum indicators will be crucial for traders and investors as Alphabet navigates through the coming weeks.